How to Track and Interpret Recurring Revenue Metrics in SaaS Businesses?

Consider a SaaS company that provides cloud-based project management tools.

In March 2025, the company starts with an MRR of $200,000. During the month, it experiences $20,000 in revenue losses due to cancellations, but gains $10,000 from new subscriptions and $5,000 from upgrades to existing subscriptions.

Calculate the MRR Churn rate, Net MRR for March, and the Net Revenue Retention (NRR) rate:

Choose the closest answer:

MRR Churn: 10%, Net MRR: $200,000, NRR: 95.0%

MRR Churn: 10%, Net MRR: $195,000, NRR: 92.5%

MRR Churn: 10%, Net MRR: $195,000, NRR: 97.5%

MRR Churn: 12.5%, Net MRR: $195,000, NRR: 92.5%

How to Track and Interpret Recurring Revenue Metrics in SaaS Businesses?

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